Release Date: November 24, 2008
For release at 10:00 a.m. EST
On November 24, 2008, the Federal Reserve will offer $150 billion in 13-day credit through its Term Auction Facility. This is a forward auction designed to provide term funding over year-end--awarded loans will settle on December 23, 2008.
Additional information regarding the auction is listed below; the auction will be conducted as specified in this announcement, Regulation A, and the terms and conditions of the Term Auction Facility (www.federalreserve.gov/monetarypolicy/taf.htm).
Description of Offering and Auction Parameters
|Offering Amount:||$150 billion|
|Bid Submission Date:||November 24, 2008|
|Opening Time:||11:00 a.m. EST|
|Closing Time:||12:30 p.m. EST|
|Notification Date:||November 25, 2008|
|Settlement Date:||December 23, 2008|
|Maturity Date:||January 5, 2009|
|Minimum Bid Amount (per bid):||$5 million|
|Maximum Bid Amount (per institution):||$15 billion (10% of Offering Amount)|
|Minimum Bid Rate:||0.38 percent|
|Incremental Bid Rate:||0.001 percent|
|Maximum Award:||$15 billion (10% of Offering Amount)|
Submission of Bids
Participants must submit bids by phone to their local Reserve Bank between the opening time and closing time on the bid submission date.
Summary auction results will be published on the website of the Board of Governors of the Federal Reserve System (www.federalreserve.gov/monetarypolicy/taf.htm) at approximately 10:00 a.m. EST on the notification date. Between 10:00 a.m. and 11:30 a.m. EST on the notification date, Reserve Banks will notify individual institutions in their districts that have submitted winning bids of their awards. Participants have until 12:30 p.m. EST on the notification date to inform their local Reserve Bank of any error.
Pro rata awards will be rounded to multiples of $10,000. Normal rounding convention will be used, except that awards under $10,000 will be rounded to $10,000.